Pydantic AI Observability & Monitoring with OpenTelemetry Pydantic AI has introduced observability and monitoring for its AI agents using OpenTelemetry, enabling users to export logs, traces, and metrics to SigNoz for real-time visibility into latency, error rates, and usage trends. The integration allows developers to instrument Pydantic AI applications with minimal code changes, leveraging SigNoz dashboards and alerts to debug issues and optimize performance. Overview This guide walks you through setting up observability and monitoring for Pydantic AI API using OpenTelemetry https://opentelemetry.io/ and exporting logs, traces, and metrics to SigNoz. With this integration, you can observe model and agent performance, capture request/response details, and track system-level metrics in SigNoz, giving you real-time visibility into latency, error rates, and usage trends for your Pydantic AI applications. Instrumenting Pydantic AI in your AI applications with telemetry ensures full observability across your AI workflows, making it easier to debug issues, optimize performance, and understand user interactions. By leveraging SigNoz, you can analyze correlated traces, logs, and metrics in unified dashboards, configure alerts, and gain actionable insights to continuously improve reliability, responsiveness, and user experience. Prerequisites - A SigNoz Cloud account https://signoz.io/teams/ with an active ingestion key - Internet access to send telemetry data to SigNoz Cloud Pydantic AI https://ai.pydantic.dev/ integrated into your Python application.- For Python: pip installed for managing Python packages and optional but recommended a Python virtual environment to isolate dependencies Monitoring Pydantic AI For more detailed info on instrumenting your Pydantic AI applications click here https://ai.pydantic.dev/logfire/ otel-without-logfire . No-code auto-instrumentation is recommended for quick setup with minimal code changes. It's ideal when you want to get observability up and running without modifying your application code and are leveraging standard instrumentor libraries. Step 1: Install the necessary packages in your Python environment. pip install \ opentelemetry-distro \ opentelemetry-exporter-otlp \ httpx \ opentelemetry-instrumentation-httpx \ pydantic-ai Step 2: Add Automatic Instrumentation opentelemetry-bootstrap --action=install Step 3: Instrument your Pydantic AI application After setting up the OpenTelemetry configurations for traces, logs, and metrics, initialize Pydantic AI instrumentation by calling Agent.instrument all : python from pydantic ai.agent import Agent Initialize Pydantic AI instrumentation Agent.instrument all This call enables automatic tracing, logs, and metrics collection for all Pydantic AI agents in your application. πŸ“Œ Note: Ensure this is called before any Pydantic AI related calls to properly configure instrumentation of your application Step 4: Run an example python from pydantic ai import Agent, RunContext import asyncio Agent.instrument all roulette agent = Agent 'openai:gpt-4o', deps type=int, system prompt= 'Use the roulette wheel function to see if the ' 'customer has won based on the number they provide.' , instrument=True @roulette agent.tool async def roulette wheel ctx: RunContext int , square: int - str: """check if the square is a winner""" return 'winner' if square == ctx.deps else 'loser' async def main : success number = 18 result = await roulette agent.run 'Put my money on square eighteen', deps=success number print result.output if name == ' main ': asyncio.run main πŸ“Œ Note: Pydantic AI supports a variety of model providers for LLMs. In this example, we're using OpenAI. Before running this code, ensure that you have set the environment variable OPENAI API KEY with your generated API key. Step 5: Run your application with auto-instrumentation OTEL RESOURCE ATTRIBUTES="service.name=